1H 2016 Results Presentation July 29 th , 2016
Results Highlights 1 Sales stabilization despite market headwinds Sales slowdown in Australia but recovering 2 Improved operating efficiency EBIT € 897mn L-f-L ( +60 bp) 3 De-gearing process paying off Net financial expenses € 190mn ( -38%) 4 Positive trend in LTM Operating CF Net FFO € 1.3bn (+21%) 5 Robust order intake underpinning future growth Backlog € 69.6bn (+3%) 2
Key financials 1H16 Like for Like* -5.3% Slowdown of activity in Sales € 16,387 mn -8.2% Australia due to projects termination but starting to recover in 2Q -0.3% EBITDA € 1,225 mn -6.9% (+6% with respect to 1Q) Improved operating -0.9% +7.8% EBIT € 897 mn margins, particularly in HOCHTIEF Positive impact in 2015 of -4,7% +0,2% Net Profit € 388 mn exceptional non-cash items Growth despite negative +3.3% +6.1% Backlog € 69.6 bn impact of forex * Adjusted by renewables and forex impact 3
Net Profit 1H16 Variation 6M15 6M16 € mn Construction 124 157 +26,1% Industrial Services ex renewables 202 200 -1.0% Renewables contribution 6 0 Environment 47 49 +3.2% Corporation 27 (17) Net Profit 388 407 -4.7% Good operating performance with improved margins 2015 Net Income includes exceptional non-cash profits in Corporation Strong impact of de-gearing process on financial expenses Forex negative impact across activities due to MXN and AUD depreciation 4
1. Sales stabilizing despite market headwinds Sales affected by currency negative impact and sales slowdown in Australia… Sales breakdown Africa 1% 16,867 Spain -5.3% Asia Pacific 17,807 17% (-16%) 23% (-29%) Rest of Europe 8% (-8%) South America 7% 16,387 (0%) North America 1H15 1H16 (+9%) 44% Renewables assets Forex … but recovering in 2Q across regions REST OF REGIONS ASIA PACIFIC +6.8% 6,503 +7.1% 1,962 ACS exCIM 1,832 1,672 CIM 1,576 6,090 Figures in € mn 2Q16 1Q16 1Q16 2Q16 5 Like for like variations
1. Sales stabilizing despite market headwinds SALES breakdown by activity ( € mn) ENVIRONMENT INDUSTRIAL SERVICES CONSTRUCTION -9.1% 11.597 +3.3% 3.606 12,756 +6.9% 1,680 3,490 1,604 11,344 3,455 1,572 1H16 1H16 1H15 1H15 1H16 1H15 • Positive performance ex • Positive performances • Affected by CIMIC top renewables across the areas of line decrease & AUD activity • Affected by MXN depreciation depreciation vs EUR and • Growth in Spain, France • Rest of areas growing project termination in and UK Spain Like for like variations Renewables assets Forex 6
2. Improved operating efficiency EBITDA ( € mn) EBIT ( € mn) Improved operating margins -0.3% 1,281 +7.8% 943 1,285 897 1,225 875 Margin 7.2% 7.5% Margin 5.5% 4.9% 1H15 1H16 1H16 1H15 Positive impact of transformation process in HOCHTIEF… 433 …reducing overheads and capital intensity Figures in € mn Like for like variations and margins Renewables assets Forex 7
3. De-gearing process paying off Total indebtedness slashed with significant reduction in Assets Held for Sale debt… - 55% 8,745 2.932 Despite LTM € 766mn investment to increase HOT & CIM stake 2.213 - 4.4% 4,117 3,934 609 193 5.812 437 4.830 3.741 3.508 2.624 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Net Debt AHS Debt Figures in € mn 8
3. De-gearing process paying off ….enables drastic reduction in financial expenses and implicit cost of debt -62% 1H 16 Year 2015 Year 2014 600 529 -54% 550 506 500 435 450 5.43% 400 342 350 298 300 4.53% 250 3.91% 200 150 100 1H14 2H14 1H15 2H15 1H16 Financial expenses Implicit cost of debt 9 Figures in € mn
4. Positive trend in FFO generation LTM jun15 LTM jun16 Net interest paid 759 445 -41% Net interest paid -34% Net Operating CAPEX 320 Net Operating CAPEX 487 40 88 134 Other results & adj.* Taxes 357 2,675 paid WC var 2,318 417 412 1,514 Taxes WC var 1,291 1,073 1,068 paid EBITDA Pre tax FFO Pre tax FFO FFO EBITDA FFO ( bf WC var) ( bf WC var) +21% Figures in € mn +41% * Dividends from JV & Associates, restructuring cost and adjustments. 10
4. Improved FFO Trend Half year Pre tax FFO (bf WC var) increasing trend +19% 791 723 667 639 406 1H14 2H14 1H15 2H15 1H16 11
5. Robust order intake BACKLOG ( € mn) and breakdown by geographies Backlog breakdown Africa Spain 1% (-1%) +6.1% 71.414 16% Asia Pacific 33% Rest of (+3%) Europe 69,561 (-2%) 11% North America South 32% (+12%) 67,329 America (-8%) 6% 1H15 1H16 • • Significant forex impact, particularly Solid growth in North America & Asia from AUD and MXN depreciation Pacific regions Forex 12 Like for like variations
5. Robust order intake BACKLOG breakdown by activity ( € mn) INDUSTRIAL SERVICES ENVIRONMENT CONSTRUCTION 52,095 +6.3% +0,8% 51,252 9,045 10,274 +11.4% 10,195 8,572 8,123 49,011 9,738 1H15 1H16 1H15 1H16 1H16 1H15 • Double digit growth in • Solid growth in North Asia Pacific • Negative forex impact America & Asia Pacific from Latam currencies • New awards of EPC • Stability in Europe projects Like for like variations Forex 13
Conclusions Resilient 2Q16 top line results despite negative FX impact and Australian slowdown Transformation and de-gearing processes paying off through operating and financial improvements Robust and diversified backlog which guarantees ST future growth On track to achieve 2016 goals 14
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